Given the utility function U = x₁2/5x23/5; when x₁ = 100 and x₂ = 200; choose the correct options. A Consuming one more unit of x2 delivers higher value of Utility compared with an increase of consumption of one unit of x1 B Utility function is a constant returns to scale function. The proportionate change in utility is the same as the proportionate change in each input. Utility function is an increasing function Marginal utility with respect to x1 is equal to 0.1447 when x1 = 100 and x2 = 200 E Marginal utility function is an increasing function F None of the given answers is valid
Given the utility function U = x₁2/5x23/5; when x₁ = 100 and x₂ = 200; choose the correct options. A Consuming one more unit of x2 delivers higher value of Utility compared with an increase of consumption of one unit of x1 B Utility function is a constant returns to scale function. The proportionate change in utility is the same as the proportionate change in each input. Utility function is an increasing function Marginal utility with respect to x1 is equal to 0.1447 when x1 = 100 and x2 = 200 E Marginal utility function is an increasing function F None of the given answers is valid
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.13P
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